In 2015, analysts at the Goldman Sachs investment bank were optimistic that Buffalo Wild Wings would increase its profit over the next few years. They cited two factors as favorable to the chain's profitability: The chain's "greater pricing power allows them to easily implement menu changes to take advantage of [changes in] consumer preferences" and "the opportunity for the chain to grow as a lunch destination."
a. What do the analysts mean by the chain's greater pricing power? Is Buffalo Wild Wings likely to be able to sustain this greater pricing power in the long run? Briefly explain.
b. Why might doing additional business at lunchtime be particularly likely to add to the profit that Buffalo Wild Wings earns? Would this additional lunchtime business result in the chain's earning an economic profit in the long run? Briefly explain.